HAMILTON, BERMUDA - 6 November 2009

Scorpion Nederlandse B.V, Venezuela Branch., a wholly-owned
subsidiary of Scorpion Offshore Ltd. ("Scorpion" or the "Company")
has issued an official notice of mediation of dispute to
UrdanetaGazprom-1 S.A. ("Gazprom") on 30 October 2009 pursuant to the
terms of the drilling contract .

The Offshore Vigilant completed operations on the first well contract
for Gazprom in mid-October 2009 with $33 million in undisputed
invoices outstanding.

As stated in our press release dated 15 October 2009, Gazprom
committed to paying these invoices last week. No amounts were
received from Gazprom.

Discussions during the week of 26 October 2009 between Scorpion and
Gazprom have also failed to resolve this matter, resulting in
Scorpion issuing a notice of mediation pursuant to the contract with
Gazprom on 30 October 2009.

In the event that the outstanding invoices are not received in the 30
day mediation period, the formal arbitration process defined in the
drilling contract will commence. Scorpion believes that the Company
will collect all outstanding amounts.

Scorpion Offshore Ltd. is a Bermuda based corporation founded in 2005
to own and operate state-of-the-art offshore drilling rigs.

Contacts:

Jon Cole, President and CEO (713) 728-6100
Mark Mey, SVP and CFO (713) 728-6100
www.scorpionoffshore.com


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